Former Los Angeles Deputy Mayor Raymond Chan was convicted of racketeering, bribery, fraud, and giving false statements in a corruption scandal at City Hall. The federal jury reached the guilty verdict less than 24 hours after closing arguments. Chan’s sentencing was set for June 10 and his attorney stated they would appeal the decision. U.S. Attorney Martin Estrada stated that Chan used his leadership position to favor corrupt individuals and companies. This was Chan’s second trial in a bribery case involving downtown Los Angeles real estate development projects.
In the latest trial, Chan and former City Councilmember Jose Huizar were accused of using the downtown real estate boom to enrich themselves and their allies. Assistant U.S. Attorney Brian R. Faerstein described Chan as an intermediary between Chinese developers and Huizar, who was in charge of overseeing such projects. More than a half-dozen others have been convicted or pleaded guilty to charges in connection to the City Hall corruption investigation, including Salvador Huizar, Jose Huizar’s brother. Jose Huizar was sentenced to 13 years in prison.
Chan’s attorney argued that while Huizar and others were corrupt, Chan was motivated by a desire to make Los Angeles more business-friendly, not greed. Chan was the top executive at the Department of Building and Safety until 2016 when he became the deputy mayor in charge of economic development under Mayor Eric Garcetti. He later left city government to become a private-sector consultant representing real estate developers. Prosecutors accused Chan of setting up a consulting firm while working for the city and receiving payments from developers after leaving his city employment.
The case was primarily focused on Jose Huizar, with Chan being the last defendant charged in the City Hall corruption investigation to go on trial. Chan’s attorney argued that Chan did not receive any lavish gifts like flights, casino chips, or hotel stays, unlike Huizar. Prosecutors alleged that Chan was involved in setting up government actions in exchange for money from developers. Chan was convicted of racketeering, bribery, fraud, and giving false statements to investigators.
In a statement, U.S. Attorney Martin Estrada emphasized that corruption and pay-to-play politics have no place in the community. Chan’s attorney stated they would appeal the verdict. The scandal has implicated several individuals involved in city politics and real estate development, with Chan being the latest to be convicted. Despite arguments about Chan’s motives and intentions, he was found guilty of multiple charges related to corruption. The case highlights the importance of accountability and transparency in government institutions to prevent such instances of abuse of power and influence.
